Requirement 2. Perform a web search for the terms commercial paper and U.S. medium-term notes. What do each of these terms mean?

Commercial paper is

A.

an unsecured, short-term debt instrument issued by a corporation, typically to meet short-term liabilities. These notes typically mature in less than 270 days.

B.

a note that usually matures in 5 to 10 years, although the maturity of the note could be longer. These notes are typically offered by a company to investors through a dealer.

C.

backed by the U.S government and includes treasury bills, treasury notes, treasury bonds, and treasury inflation-protected securities.

D.

an asset-backed note most often used as a means of raising short-term capital to fund specific projects. The holders' investment is expected to be repaid with the revenue those projects generate.